Hanoi is expected to allocate VND51.07 trillion (US$2.2 billion) for public investment in 2022, of which VND510 billion ($22.1 million) would be used for payment of debts and interest rates.

Overview of the debate. Photo: Thanh Hai

The figures were revealed during the debate of the Hanoi 16th People’s Council on the city’s mid-term public investment plan 2021-2025 held on December 7.

A report from the municipal People’s Committee showed Hanoi disbursed as of November 26   44.4% of the year’s allocations.

This year, the city targets to disburse VND38.8 trillion ($1.68 billion) in public funds or 93.3% of the target set by the prime minister.

Amid the severe Covid-19 impacts. Hanoi plans to set up a backup fund of VND1.5 trillion ($65.1 million) in the 2022 public investment plan while giving permission for projects failing to fully disburse the fund allocated for 2021 due to the Covid-19 restrictions to expend the unspent amount next year.

The Economic-Finance Committee under the municipal People’s Council urged the local authorities to speed up the preparation process of projects to ensure they progress as scheduled and contribute to economic growth.

For unfinished projects in 2021, the Committee requested the local authorities to soon finalize the extension procedures during the remainder of the year and avoid any disruption in the implementation process.

The Committee noted over VND10.2 trillion ($443.2 million), or 29.7% of total investment fund in 2022, would be allocated for rural and urban districts for developing their respective infrastructure projects, including the construction of new schools, upgrading healthcare facilities, and preserving historical sites, which reflects the attention of the city to support the growth at grass-roots levels.

For the 2021-2025 period, the city sets to earmark VND650 trillion ($28.4 billion) for the 2021-2025 public investment plan.

The priority order for investment would be aligned with the vision for the development of the transport sector and socio-economic infrastructure, namely the ring-road 2.5, ring-road 3, ring-road 3.5, ring-road 4; major bridge crossing river (Vinh Tuy bridge Phase 2, Thuong Cat bridge); provincial roads (national road 6, upgrading national road 32, national road 1A, 21B); and urban railway projects.